EU budget talks collapse following rows over funding increase

Eight hours of negotiations in Brussels ended in walkouts after MEPs refused to drop demands for an extra £13.8 billion in European Union spending for this year and 2013.

The failure of the talks casts a fresh doubt on whether a major summit to agree to the EU's future funding from 2014 to 2020, scheduled for later this month, can go ahead.

There had already been speculation that the summit would be cancelled because David Cameron was refusing to drop his threat of using Britain's veto to block any future increase above the level of inflation.

Friday night's deadlock was over demands by the European Commission for a £7.3 billion spending increase by the end of this year to meet a funding shortfall, figures that are disputed by Britain and other governments.

At the same time, the European Parliament wants to reinstate over £6.5 billion in funding that had been cut by governments from next year's budget to reflect national austerity programmes.
The two demands, for this year and next, would increase Britain's EU contributions by £1.6 billion at a time of deep cuts to public services domestically.
During the acrimonious negotiations, Greg Clark, the Financial Secretary to the Treasury, attacked the commission for asking for extra 9.65 per cent in funding for this year almost 11 months into 2012.
"Europe must practice the fiscal discipline that it demands of member states," he said.

Read more: http://www.telegraph.co.uk/news/worldnews/europe/eu/9668841/EU-budget-talks-collapse-following-rows-over-funding-increase.html